OSU Medical Trust Finance Committee Minutes

OSU Medical Authority and Trust

Thursday, January 22, 2026 12:00 PMCST
@ OSU Medical Center, 2nd Floor Executive Boardroom, 744 W. 9th St., Tulsa

Agenda

Notice of the meeting was given in writing to the Oklahoma Secretary of State more than forty-eight (48) hours prior to the meeting, and the agenda of this meeting was posted at entrances of Oklahoma State University Center for Health Sciences and Oklahoma State University Medical Center twenty-four (24) hours prior to such meeting, excluding Saturdays, Sundays, and legal holidays, in compliance with the Oklahoma Open Meeting Act.

Attendance

Present:
Members: Jay Helm, Brett Lessley, Tracy Poole
Guests: Eric Atkinson, Rick Brewster (remote), Clay Bullard, Melissa Cox, Deborah Dage (remote), Mike Fields, Catherine Gann, Karlee Gholson, Michael Herndon, Finny Mathew, Eric Polak, Jessica Russell (remote), Johnny Stephens, Terri Tinkler, Erica Woolf
Absent: Barry Steichen

1. Call to Order (Presenters: Brett Lessley)
   • A quorum was established, and the meeting was called to order at 12:04 PM by Brett Lessley. Johnny Stephens is filling in for Barry Steichen.
2. Approval of the minutes from the December 11, 2025 meeting – ACTION (Presenters: Brett Lessley)
   • File Name: Draft-OSU Medical Trust Finance Committee Minutes 12.11.2025.pdf
   • Motion: Motion to approve the minutes from the December 11, 2025, meeting.
   • Motion moved by Tracy Poole and motion seconded by Johnny Stephens. Aye: Lessley, Stephens, Helm, Poole Nay: None Abstain: None
3. Finance Reports
   1. Review of Month to Date and Year to Date November and December 2025 Financials (Presenters: Melissa Cox, Eric Atkinson)
      • File Name: OSUMT Nov and Dec 2025 Financial Presentation - Finance.pdf
      • Melissa Cox PS, LLC
        • Key Volume Statistics
          • Hospital visits favorable to budget due to inpatient pulmonology and orthopedic service lines.
          • Clinic visits favorable to budget due to orthopedic and wound service lines.
          • Clinic FTE's favorable to budget due to staff shortage.
          • Employed Provider lower by 1 FTE due to the departure of Dr. Hallie Frederick.
        • Income Statement for December
          • Net Revenue favorable to budget due to increase in volume.
          • S&B favorable to budget due to favorable FTEs, partially offset by unfavorable physician bonuses.
            • Unfavorable to prior year due to new service lines and additional providers.
          • Supplies unfavorable due to additional immunization supplies.
          • Contract Services unfavorable to prior year due to addition of Orthopedic service line.
          • Insurance favorable due to leased physician insurance applied to contract
            services.
        • Income Statement YTD
          • Net Revenue favorable to budget due to increase in volume.
            • Favorable to prior year due to new service line volume.
          • Other Revenue favorable to budget due to quality and Medicaid enhanced payment.
          • S&B unfavorable to budget due to higher than anticipated physician productivity bonuses.
            • Unfavorable to prior year due to new service lines and additional providers.
          • Contract Services unfavorable due to higher than anticipated orthopedic productivity bonuses.
            • Unfavorable to prior year due to addition of Orthopedic service line.
          • Insurance favorable due to leased physician insurance applied to contract services.
      • Eric Atkinson OSUMC
        • Key Volume IP Statistics
          • Unfavorable to budget for admissions. Still favorable year-to-date.
          • Case mix of the acuity of patients was high.
        • Key Volume OP Statistics
          • Visits are exceeding budget and prior year.
          • Surgery, Cath. Lab, and GI all exceeded budget.
          • Mammo, CT, MRI, and Radiology Special all exceeded budget.
          • Ortho is up 68 over prior year just in the month of December.
        • Income Statement for December
          • Net Patient revenue had high volumes to budget consisting of 43 or 14% in Surgery, 30 or 29% in Cath. Cases and 42 or 43% in GI Cases driving higher NPSR. Additional reserve booked for DPP Reconciliation of $722k.
          • Other Operating Revenue increase related to previous year higher reimbursements for Residency Programs.
          • Professional Fees variances to previous year subsidy agreements entered into during FY25 and budgeted in FY26 for DIA ($5k), UTB ($173k) and slightly offset by a favorable variance in ED Professional Services ($61k).
          • Revenue Share exceeding budget based on monthly and YTD financial performance. Increase to previous year based on forecasted EBITDA for FY26 (change in accrual methodology).
          • Lower to previous year based on decreased OSUMA allocations received
            in FY26 in order to fund potential Managed Medicaid IME program.
        • Income Statement YTD
          • Favorable volumes which is driving the $5.5 million favorable variance in net revenue.
          • Salaries are coming in above budget, but this is primarily driven by a lot of that staff that we brought in to cover all the additional volumes that we didn't really budget for.
          • Contract labor is holding steady.
          • Professional Fees previous year variances largely driven by subsidies. DIA for IR ($724k), DIA for Diagnostic Imaging ($469k), UTB for Anesthesia ($518k), and ED Professional Services ($431k).
          • Contract Services lower than prior year due to $853k in YTD FY25 related to shuttle services and parking garage costs and insourcing IP Dialysis saving approximately $765k. Unfavorable to budget to outside consultants of $250k.
          • Non-operating income lower to prior year based on decreased OSUMA allocations received in FY26 in order to fund potential Managed Medicaid IME program.
          • Ended the month of December year to date ahead of budget by $2.3 million behind prior year by 4.5.
        • Key Financial Ratios
          • Net Revenue per adjusted admit is up due to revenue cycle efforts.
          • Salaries, wages and benefits below budget.
          • Days cash on hand was 184 at the end of December and that is down from 205 last year.
        • Transfer Analysis
          • Accepts were high and denials remained about even.
        • RN FTEs
          • Nursing numbers have stayed right around mid to upper 60's and hospital
        • Consolidated Income Statement
          • Ended the month 83,000 favorable to budget and about 2.5 favorable year to date.
        • ACR Proforma Comparison
          • Inpatient-We are hovering about 40% managed Medicaid and 60% traditional Medicaid. We have received $10.9 million through six months for the DPP payments. There is $722 million that we booked this month to reserve up to half of that variance there in the event that there's a reconciliation that takes place and we need to repay some of the payments from that delta.
4. Contracts and Capital
   1. Discussion, consideration and possible vote to approve purchase of unbudgeted Capital Request - ACTION (Presenters: Eric Atkinson)
      • Contrast injector in Cath Lab is needing to be replaced and the approximate cost will be $239,000.00. Due to the cost exceeding $100,000 it is being brought to the Board. Seeking approval to reallocate some of the capital from funds either abandoned or that came in under budget. This will be taken to the Trust for approval.
   2. Discussion and consideration of an agreement with Vicinity Energy for steam and chilled water services to the Oklahoma Psychiatric Care Center (Presenters: Eric Polak)
      • File Name:  OPCC - ESA (steam CW) - Final 1-21-2026.docx
      • Eric Polak gave some background on past decisions that led to this point. The decision was made at the very beginning of the project to not build a central plant inside the building because of site constraints and the VA hospital was buying steam and chilled water from Vicinity. Every decision was made to maximize the number of beds in the facility. The agreement was for ODMH to directly contract for utilities. ODMH was planning to sign the service agreement that kicked in when actually the services turned on and pay the bills directly. Recently we were informed by the CMAR that Vicinity was planning to cease work on the site because ODMH declined to sign an agreement for services because it spanned multiple years. A conversation was had with ODMH, where we were informed they will not sign it nor work with Vicinity to amend the contract to an acceptable format. The Trust has more legal flexibility to enter into an agreement with Vicinity and recoup the costs under the lease with ODMH. Eric Polak recommended that we sign the contract with Vicinity and then bill ODMH under the proposed lease agreement. Chairman Helm recommended forwarding this to the Trust for approval subject to the execution of the lease agreement with ODMH.
5. Policies
   1. Discussion, consideration, and possible vote to approve Travel and Business Expense Reimbursement policy - ACTION (Presenters: Eric Atkinson)
      • File Name: Travel and Business Expense Reimbursement - Clean Version.pdf
   • Eric Atkinson reviewed the history on this and the current minor change being asked for. Travel within city limits is not reimbursable.
   • Motion: Motion to approve Travel and Business Expense Reimbursement policy.
   • Motion moved by Clay Bullard and motion seconded by Tracy Poole. Aye: Lessley, Stephens, Helm, Poole Nay: None Abstain: None
6. Unfinished Business (Presenters: Brett Lessley)
7. New Business (Presenters: Brett Lessley)
8. Adjournment (Presenters: Brett Lessley)

Minutes signed off by Oklahoma State University Medical Trust Finance Committee Chairman, Brett Lessley.

If you would like a copy of these minutes, please reach out to Terri Tinkler at osuma@okstate.edu.